The 5 Top Small Cap Stocks to Own for New Year

2021

Some of the greatest opportunities can be found in small-cap stocks.

Just over the last few years:

• Fate Therapeutics (FATE) exploded from a low of $2.52 to $56 a

share
• Digital Turbine (APPS) rocketed from $2 to $39
• TG Therapeutics (TGTX) jumped from a low of $3.45 to $30

All were flying well under radar. But all also had sizable money making
catalysts.

The best part – there are other small cap opportunities that could double,
triple, if not quadruple your investment over the next year. We’ve included
five of those very stocks here.
 Small Cap Opportunity No. 1 -- Lithium Americas (LAC)

The lithium story is heating up again with demand for electric vehicles off
the charts.

For one, with the Trump Administration turning the keys over to Biden,
green related stocks have begun to explode. Most notably, electric vehicle
related stocks.

“There are now one million electric vehicles on the road in the United
States. But a key barrier to further deployment of these greenhouse-gas
reducing vehicles is the lack of charging stations and coordination across all
levels of government. As President, Biden will work with our nation’s
governors and mayors to support the deployment of more than 500,000
new public charging outlets by the end of 2030,” as noted on his site.

Helping quite a bit, governments around the world are pushing for EVs,
too.

California Gov. Gavin Newsom, for example, just signed an executive order
that will ban the sale of gas-powered passenger cars in the state starting in
2035. In Europe, “Automakers need to sell more electric vehicles after EU
lawmakers in December 2018 ordered them to cut CO2 emissions by 40
percent between 2007 and 2021.”

However to make all of that a reality, the world must have more lithium
supply, which could fuel even more upside in related names like Lithium
Americas. Considering lithium is in short supply, that news only makes LAC
more attractive.

Small Cap Opportunity No. 2 – Arcimoto Inc. (FUV)

The company, which develops, manufactures, and sells three-wheeled

electric vehicles is getting swept up in the EV story, too.

For one, according to the company, “YTD September 30, 2020 revenue
surpassed every prior full year, and our balance sheet is the strongest it
has been in the company’s history,” said Douglas Campoli, CFO and
Treasurer. “While making progress on every front, we maintained
Arcimoto’s core financial mandates of fiscal discipline and capital efficiency.”

Two, the EV story is only getting stronger.

By 2025, EV sales could surpass internal combustion engine vehicles with
up to a third of EV market share. By 2030, that number could jump to
51%, which would far surpass internal combustion engines.

The International Energy Agency says the world could see 130 million EVs
on the road by 2030, a massive jump from just 5.1 million in 2018. Even
more impressive, over the last five years, EV sales have been growing at a
rate of nearly 41%, says Clean Technica.

Analysts at Cairn Energy Research Advisors say we’re likely to see a

monster surge in electric vehicle sales in 2021 as countries around the
world push new programs to encourage consumers to buy battery powered
vehicles, reports CNBC.

Small Cap Opportunity No. 3 – Aurora Cannabis Inc.

(ACB)

Cannabis stocks could easily see higher highs, including Aurora Cannabis.

All on speculation Joe Biden could legalize it at the federal level.

After all, Biden has already said he would “decriminalize the use of
cannabis and automatically expunge all prior cannabis use convictions,” as
quoted by the Boston Globe.

“We believe the Biden win is an important step on the path to federal
permissibility of cannabis in the US market through decriminalization and
de-scheduling,” said Canopy Growth CEO David Klein, as quoted by CNN.

“The results of the ballot initiatives clearly showcase that support for adult-
use marijuana legalization extends across geographic and party lines and is
supported by a majority of Americans. Legal marijuana is becoming the
American norm,” he added. “This will likely increase pressure on Congress
to pass major federal marijuana reform in the very near future.”

Plus, we’re seeing big support across the U.S.

New Jersey and Arizona voted to approve amendments to legalize the use
of green for those above the age of 21. Voters in South Dakota approved it
for medical use. Even voters in Montana voted to legalize, regulate and tax
recreational green for adults 21 and older.
 Small Cap Opportunity No. 4 – Wisdom Tree Small Cap
Dividend Fund (DES)

One of the best ways to diversify is to pick up an ETF, such as the Wisdom
Tree Small Cap Dividend Fund (DES). Not only does an ETF give you
exposure to multiple stocks, it allows you to do so at less cost. For
example, the DES ETF trades at $25.63 and gives us exposure to stocks,
such as Ryder System, Olin Corp., B&G Foods, Chemours Co., and Big Lots.

Over the last year, the DES ETF ran from a March low of $15.18 to a recent
high of $25.65. With small caps picking up a good deal of momentum, this
is a top ETF to consider.
 Small Cap Opportunity No. 5 – Sunworks Inc. (SUNW)
Solar stocks, like Sunworks have been exploding higher on Joe Biden’s win.

For one, the U.S. is likely to rejoin the Paris Climate accord.

Two, Joe Biden has laid out a $2 trillion clean energy infrastructure plan,
with hopes for net zero emissions by 2050. In addition, he has said he
wants to “upgrade four million buildings and two million homes over four
years to meet new energy efficiency standards,” as noted by The
Conversation. That’s bullish for solar stocks, like SUNW.

In addition, California — where Sunworks does a good deal of business

recently said all new residential construction built now will be constructed
with solar panels. That’s also bullish for SUNW. We also have to consider
the company is winning new business these days. For example, in the
third quarter, it signed $10 million in new project deals.
DISCLAIMER:

This manual is for informational and entertainment purposes only. The

author is not an investment adviser, financial adviser, or broker, and the
material contained herein is not intended as investment advice. If you wish
to obtain personalized investment advice, you should consult with a
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accuracy of any data, including stock prices and stock performance
histories. No mention of a particular security or instrument herein
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